May 31, 2022 — Letter

On behalf of the clients, communities, and neighborhoods we represent, we urge HUD to adopt enhancements to the FHA COVID-19 waterfall to address the impact of rising interest rates. The rate HUD uses to determine the interest rate for modified loans has increased by almost 2.5% over the last year. The higher interest rate directly limits the amount of relief borrowers can obtain through FHA’s waterfall, especially for those borrowers who currently have low rates.